R

Enterprise RPA Adoption | Pinnacle Model™ Assessment

Overview

March 2018
Pinnacle Model™ research methodology

Definition of Pinnacle Define the We evaluate multiple topics to identify hot topics that will resonate globally with sourcing
Enterprises™ topic leaders. We work with internal and external SMEs to define the topic and set boundaries
Everest Group Pinnacle
Model™ assessments
identify Pinnacle Survey We use surveys, RFIs, and other data collection methods to gather information from
Enterprises™, companies enterprises enterprises on capabilities and outcomes associated with the topic under evaluation
that are achieving superior
business outcomes because
of their advanced
capabilities. The journeys of Interview We then conduct interviews/roundtables with a subset of participants to gain deeper
these best-of-the-best participants perspectives on their experiences, challenges, and journeys
companies provide insights
into the key enablers
needed to achieve desired Form We form an emerging point of view on the correlations between capabilities and outcomes,
outcomes and point to the hypotheses adoption trends, and key success factors
investments required for the
greatest speed to impact.
Whether companies are Validate and A cross-section of SMEs from various practices debates and refines the emerging
wanting to make incremental refine hypotheses
changes or achieve major
transformations, Pinnacle
Enterprises exemplify the
Publish and We compile and share final results with participants, our members, and other stakeholders
way to success.
educate in the global services sector. Participants also receive a high-level customized analysis

In the current Pinnacle Model™ assessment, we look at

enterprise Robotic Process Automation (RPA) adoption
patterns to compare outcomes with associated capabilities Pinnacle Enterprise™ Accelerating your Implications for
differentiators RPA journey enterprises

R
Copyright © 2018, Everest Global, Inc.
2
We identified RPA Pinnacle Enterprises™ based on their
focus on outcomes and capability maturity
PI ACLE

Everest Group recently assessed Enterprise RPA adoption on the Pinnacle Model™ based on a study with 52 enterprises

Business impact Level 3 Pinnacle Enterprises

Outcomes
Level 2

Operational impact
Level 1

Cost impact

Basic Typical Advanced Leaders

Capability maturity

Vision & strategy Implementation Organization & talent Technology Resourcing

Source: Everest Group’s RPA Pinnacle Model™ Assessment (2018)

R
Copyright © 2018, Everest Global, Inc.
3
Pinnacle Enterprises™ significantly exceed other enterprises
in three key impact areas
All enterprises have gained maximum impact from RPA in operational areas

Enterprise RPA impact comparison

Cost impact Operational impact Business impact

Pinnacle Enterprises generated Pinnacle Enterprises, on average, A significantly higher share of

4X RoI and created 3X the have achieved Pinnacle Enterprises have
resource capacity, compared 50% improvement generated “high impact” in
to other enterprises in operational metrics, compared strategic areas (e.g., customer
to 30% by other enterprises experience and time-to-market)

Source: Everest Group’s RPA Pinnacle Model™ Assessment (2018)

R
Copyright © 2018, Everest Global, Inc.
4
Pinnacle Enterprises™ have developed differentiated
capabilities across the organization

Enterprise RPA capability maturity comparison

Vision & strategy

Better organizational preparedness;
RPA is viewed as a contributor to digital
strategy, instead of a tactical measure Organization & talent
Higher collaboration among
BUs, adoption of RPA CoEs,
and upskilling/reskilling of
impacted resources

Technology Implementation
Focus on reusability Significantly wider scope (5X
number of bots)
(shared libraries) and adoption
and higher speed of implementation (3X faster)
of next-generation
and scaling up (25% faster)
automation technologies

Resourcing
Higher leverage of third-party vendors/service
provider resources for training, implementation,
and ongoing support & maintenance activities
Source: Everest Group’s RPA Pinnacle Model™ Assessment (2018)

R
Copyright © 2018, Everest Global, Inc.
5
RPA Pinnacle Enterprises™ achieve high impact with differentiated
capabilities: organizational readiness, governance, reusability,
and scale & speed of implementation
Top five distinctive capabilities for RPA Pinnacle Enterprises Other distinctive capabilities for RPA Pinnacle Enterprises

Vision & strategy Implementation Organization & talent Technology Resourcing

High

Organizational readiness Scale and scope Governance Reusability Resourcing

Contribution to capability maturity gap

Vision Speed of implementation Change management Technological sophistication

Implementation approach Next-gen automation

Low

IT alignment Technology sourcing

Source: Everest Group’s RPA Pinnacle Model™ Assessment (2018)

R
Copyright © 2018, Everest Global, Inc.
6
One of six implications for enterprises
Improved operational effectiveness and enhanced employee and customer
experience are key drivers of RPA adoption

 Automation needs to be viewed as the next big enabler of operational improvement, which will result
in both employee and customer experience enhancement
 Financial benefit – both top line and bottom line growth – will follow as the above objectives are
achieved
 Pinnacle Enterprises’ more holistic approach allows them to see both higher chances of success
and ROI
Source: Everest Group’s RPA Pinnacle Model™ Assessment (2018)

R
Copyright © 2018, Everest Global, Inc.
7
Other key snippets from the 2018 RPA Pinnacle Model™
Assessment

Pinnacle Enterprises Other enterprises

Changes made to business processes Role of third-party system integrators / service providers in RPA initiative1
for RPA adoption (share of enterprises) Number of respondents

11% 89% RPA implementation and integration

44% 56% Identifying and training resources

No significant changes
Ongoing support and maintenance
Simplification and reengineering of processes

Primary philosophy behind adopting RPA Enterprise Challenges for RPA adoption (level of difficult ranges from 1 [least] to 5 [most])

Key components of organization’s  Lack of internal skills and knowledge (3.8)

broader digital strategy  Broken processes (3.4)
 Concerns from IT teams (3.2)
 Cultural resistance to change (3.1)
As a means to make some  Organizational structure (2.8)
processes more efficient  Complete list of challenges in full assessment

Three key points of interest among Pinnacle Enterprises in RPA adoption trends
 Empowerment at the grass-roots level is the key to accelerate RPA adoption, in addition to the top-down RPA initiatives

 Pinnacle Enterprises™ significantly exceed other enterprises in achieving positive impact on strategic objectives from RPA implementation

 About half of all Pinnacle Enterprises™ have achieved more than 100% ROI from their RPA investments, whereas 44% of other enterprises
are yet to achieve any ROI

1 Numbers do not total 100% as respondents have leveraged third-party providers across different stages of RPA initiatives
Source: Everest Group’s RPA Pinnacle Model™ Assessment (2018)

R
Copyright © 2018, Everest Global, Inc.
8
Learn more insights from our RPA Pinnacle
Model™ Assessment
Additional topics covered in our report (85+ pages) Contact our analysts

 Differentiators for Pinnacle Enterprises™ Michel Janssen

– Business outcome differentiators Chief Research Guru
– Capability differentiators Research Practice,
Everest Group
 Pinnacle case study – Leading information services
Michel.Janssen@everestgrp.com
company derives upwards of 10X productivity increase
through a harmonized adoption of lean and automation
Sarah Burnett
 Key implications for enterprises
Vice President – Services
Optimization Technologies,
 Accelerating your RPA journey
Everest Group
 Assessment of capability maturity Sarah.Burnett@everestgrp.com
– Vision and strategy
– Implementation Sakshi Garg
– Organization and talent Practice Director – Global
– Technology Sourcing Research Practice,
– Resourcing Everest Group
Sakshi.Garg@everestgrp.com
 Assessment of impact created
– Cost impact
– Operational impact Amardeep Modi
– Strategic impact Practice Director – Services
Optimization Technologies, Everest
Group
Download the Full Report Amardeep.Modi@everestgrp.com

R
Copyright © 2018, Everest Global, Inc.
9
 About Everest Group

Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading
enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in making
well-informed decisions that deliver high-impact results and achieve sustained value.
Our insight and guidance empower clients to improve organizational efficiency,
effectiveness, agility, and responsiveness. What sets Everest Group apart is the
integration of deep sourcing knowledge, problem-solving skills and original research.
Details and in-depth content are available at www.everestgrp.com.

Dallas (Headquarters) Stay connected

info@everestgrp.com
+1-214-451-3000

Bangalore
india@everestgrp.com Website
+91-804-276-4533

Delhi www.everestgrp.com
india@everestgrp.com
+91-124-496-1000

London Social Media

unitedkingdom@everestgrp.com @EverestGroup
+44-207-129-1318 @Everest Group
New York
info@everestgrp.com
+1-646-805-4000 Blog Sherpas In Blue Shirts
Toronto
canada@everestgrp.com
www.sherpasinblueshirts.com
+1-416-388-6765
R
Copyright © 2018, Everest Global, Inc.
10